REG - Sovereign Metals Ltd - Strategic Heavy Rare Earths Recovered at Kasiya
21/01/2026 07:00
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RNS Number : 7077P Sovereign Metals Limited 21 January 2026
NEWS RELEASE I 21 JANUARY 2026
STRATEGIC HEAVY RARE EARTHS RECOVERED AT KASIYA
· Sovereign recovers heavy rare earth monazite concentrate from Kasiya
rutile tailings stream
· Preliminary analysis confirms Kasiya monazite to contain
exceptionally elevated levels of heavy rare earth elements Dysprosium -
Terbium (DyTb) and Yttrium, materially exceeding those of the five largest
producers globally, which account for 70% of the world's rare earth production
· DyTb and Yttrium are of paramount importance to nations seeking to
secure and protect rare earth supply chains
o DyTb: heavy magnet rare earths essential for high-temperature permanent
magnets used in advanced technology, including defence systems and precision
weapons
§ Q4 2025 prices in Europe: US$850,000/t for Dy and $3,600,000/t for Tb
o Yttrium: high-impact rare earth element critical for aerospace, thermal
barrier coatings, radar and laser systems, alloy strengthening and
semiconductor manufacturing
§ Q4 2025 price: $270,000/t; up 4,000% from Q1 2025, with the US importing
100% from China
· Monazite by-product has potential to add third revenue stream to
Kasiya for near-zero incremental cost
o Basic monazite concentrate currently sells for over US$8,500/t delivered
to China
· Kasiya's growing strategic importance emphasised by recent US State
Department visit to its Malawi operations and China's recent restriction of
heavy rare earth exports to Japan
Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:SVMLF) (Sovereign or the
Company) is pleased to announce a significant and strategic rare earth value
addition to its Kasiya Rutile-Graphite Project (Kasiya or the Project) in
Malawi.
The Company has successfully recovered a monazite product containing
high-value heavy rare earth elements (REE) from the tailings stream generated
during rutile processing at its upgraded Lilongwe laboratory facilities. The
concentrate was recovered from material that would otherwise be discarded,
i.e. the non-conductor tailings stream from electrostatic separation of a
heavy mineral gravity concentrate of Kasiya ore. Producing a monazite
concentrate would therefore require no additional complex processing. Chemical
analysis of magnetic concentrates from processed resource drilling samples
performed by Scientific Services South Africa confirmed the favourable rare
earth oxide distributions produced from the monazite concentrate.
Preliminary analysis has confirmed the monazite concentrate contains
exceptional heavy rare earth content averaging 2.9% (and up to 3.9%) combined
DyTb and averaging 11.9% (and up to 17.3%) yttrium, and light rare earth
content including 21.8% neodymium-praseodymium (NdPr).
This composition sets Kasiya apart from all major global rare earth producers.
The five largest operations - which together account for over 70% of global
production - are dominated by light rare earth elements. Strategically
critical heavy rare earths urgently required by US, Japan and EU advanced
technology, defence, and industrial supply chains are present only in trace
amounts, or absent entirely, in these deposits.
Managing Director and CEO Frank Eagar commented: "This is an exceptional
development that has the potential to fundamentally enhance Kasiya's strategic
significance. With simple processing, our upgraded laboratory has recovered a
valuable monazite concentrate product from the rutile tailings stream, with
heavy rare earth content that the world's major producers simply cannot match.
These are precisely the elements that matter most to nations seeking to
protect and grow their critical mineral supply chains. Dysprosium and terbium
enable permanent magnets to function in advanced technologies, including
robotics, fighter jets, guided missiles, and naval propulsion systems. Yttrium
protects jet engines and hypersonic vehicles from extreme temperatures. China
imposed export controls on all three in April 2025, and Western supply chains
are now acutely exposed.
What makes this value addition particularly significant is that this product
was recovered from our rutile processing tailings stream. We are not currently
contemplating a complex, standalone rare earth operation. We have recovered
critically strategic rare earths from what would otherwise be discarded - a
by-product of the processing route we will use for rutile and graphite
production.
Kasiya's rutile will feed aerospace-grade titanium production. Our graphite is
essential for battery anodes and traditional industrial applications. And now
Kasiya has the potential to also deliver critical heavy rare earths. We have
an exciting workstream ahead of us as the potential of the heavy rare earth
minerals is delineated. The recent visit by the US State Department to our
Malawi operations, combined with our Collaboration Agreement with IFC,
reflects the strategic importance that governments and institutions are
beginning to attach to Kasiya."
PRELIMINARY ANALYSIS VS MAJOR GLOBAL PRODUCERS
Global rare earth production is concentrated in five major operations: three
in China (Bayan Obo, Weishan, Maoniuping), one in Australia operated by Lynas
Rare Earths Ltd (Mt Weld), and one in the United States operated by MP
Materials Corp (Mountain Pass). Together, these mines supply over 70% of the
world's rare earth production.
Figure 1: Strategic Rare Earth Composition - Kasiya vs Major Global Producers
(See Appendix 2 for breakdown and sources)
Table 1: Kasiya vs five largest REE producers
Project Location NdPr DyTb Yttrium
Mt Weld Australia 23.3% 0.4% 0.8%
Mountain Pass USA 16.4% 0.0% 0.0%
Bayan Obo China 21.7% 0.0% 0.4%
Weishan China 14.9% 0.1% 0.8%
Maoniuping China 21.0% 1.3% 6.3%
Top Five Producer Average 19.4% 0.4% 1.7%
KASIYA Malawi 21.8% 2.9% 11.9%
Source: See Appendices 1 & 2
All five are dominated by light rare earths - principally lanthanum and
cerium, which are abundant and low-value, and the magnet rare earths Neodymium
and Praseodymium (NdPr). The strategically critical heavy rare earths -
dysprosium, terbium, and yttrium - that underpin high-performance advanced
technology, defence, industrial and renewable energy applications are present
in much smaller amounts. Kasiya's heavy rare earth content is approximately 7x
higher for both DyTb and yttrium than found in the five largest rare earth
producing mines. Mountain Pass - America's only rare earth mine - contains no
measurable DyTb or yttrium.
Figure 2: Current Prices of Rare Earth Oxides delivered to Europe
(Sources: Dy, Tb, NdPr: Energy Fuels Inc. January 2026 Company Presentation:
"Building a Globally Significant Critical Mineral Company in the US"; Yttrium:
Reuters news article "A new rare earth crisis is brewing as yttrium shortages
spread" dated 17 November 2025)
PRELIMINARY ANALYSIS VS REE DEVELOPMENT PROJECTS
Table 2: Kasiya vs select REE development projects
Project Company Location DyTb Yttrium NdPr Government Involved(1)
KASIYA Sovereign Malawi 2.9% 11.9% 21.8%
Tanbreez Critical Metals Greenland 3.3% 16.8% 16.6% US
Wimmera Iluka Australia 2.0% 14.0% 20.0% Australia
Phalaborwa Rainbow RE South Africa 1.3% 2.3% 29.3% US
Eneabba Iluka Australia 1.0% 6.0% 22.0% Australia
Balranald Iluka Australia 1.0% 5.0% 22.0% Australia
Songwe Hill Mkango Malawi 0.9% 2.4% 32.8% US
Longonjo Pensana Angola 0.7% 2.6% 22.1% Angola
Vara Mada Energy Fuels Madagascar 0.7% 1.6% 23.8% n/a
Nolans Arafura Australia 0.4% 1.4% 26.4% Australia
Kangankunde Lindian Malawi 0.1% 0.2% 19.4% Australia
1. Government involvement includes financial, political, or commercial
assistance from any government-related entity; Lindian's partner, Iluka's
refinery, is being supported by the Australian Government; Vara Mada is
included for comparability as a significant titanium-feedstock and monazite
project.
Source: See Appendices 1 & 2.
China's April 2025 export controls on dysprosium, terbium, and yttrium have
created acute supply shortages for Western manufacturers. On 6 January 2026,
China announced strengthened export controls on dual-use items to Japan,
effective immediately. Despite 15 years of diversification efforts, Japan
remains approximately 60% dependent on Chinese rare earth imports. For heavy
rare earths, Japan's dependence on China approaches 100%. Meanwhile, the US is
100% reliant on imports for its yttrium requirements.
Preliminary analysis of Kasiya's monazite REE content demonstrates one of the
highest combined heavy rare earth profiles while maintaining NdPr levels
comparable to many REE development projects that have received government
backing.
The US State Department visited Sovereign's operations in Malawi in late 2025
as part of a broader engagement with strategically significant critical
minerals projects in Africa.
RARE EARTHS BY-PRODUCT FROM EXISTING PROCESS
Total rare earth oxide was analysed for in magnetic heavy mineral concentrates
produced from aircore drilling samples during laboratory analysis for rutile.
The magnetic concentrates were composited by depth interval (0-6m and 6-20m)
to assess variation in mineralogy with depth associated with weathering units.
Separately, monazite concentrates were produced from bulk samples processed
through the standard Kasiya flowsheet. Gravity concentrates were subjected to
electrostatic separation, with the non-conductor stream then subjected to
further gravity separation, followed by magnetic separation to produce a
magnetic monazite concentrate. Duplicate analyses confirmed excellent
repeatability. See Appendix 1 for details. Chemical analysis to determine the
distribution of rare earth oxides was conducted by the Scientific Services
South Africa laboratory.
No additional complex processing was required, so capital requirements will
not include a parallel full rare-earth processing circuit, as required by
primary REE miners. This represents potential by-product economics at
near-zero incremental cost - rare earth recovery as an addition to existing
rutile and graphite processing infrastructure.
Figure 3: Sample of Kasiya's monazite concentrate containing high-value heavy
rare earths
Refer to Appendix 1 below for disclosure of the laboratory metallurgical
results from samples of Kasiya's monazite concentrate
NEXT STEPS
Sovereign will now undertake further work to characterise the monazite
mineralisation at Kasiya, including:
· Detailed mineralogical characterisation of monazite occurrence and
distribution within the Kasiya orebody;
· Assessment of heavy rare earth concentrate recovery rates through the
proposed Kasiya processing flowsheet; and
· Evaluation of potential scale of rare earth production as a
by-product and associated economics.
Enquiries
Frank Eagar, Managing Director & CEO
South Africa / Malawi
+27 21 140 3190
Sapan Ghai, CCO
London
+44 207 478 3900
Nominated Adviser on AIM and Joint Broker
SP Angel Corporate Finance LLP +44 20 3470 0470
Ewan Leggat
Charlie Bouverat
Joint Broker
Stifel +44 20 7710 7600
Varun Talwar
Ashton Clanfield
Competent Persons Statement
The information in this report that relates to Metallurgical Test work is
based on information compiled by Andries Willem Kruger, a Competent Person,
who is a Member of the South African Council for Natural Scientific
Professions, a Recognised Professional Organisation' (RPO) included in a list
promulgated by ASX from time to time. Mr Kruger is employed by Sovereign
Metals Limited and is a holder of ordinary shares and unlisted performance
rights in Sovereign Metals Limited. Mr Kruger has sufficient experience, which
is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking, to qualify as a
Competent Person as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr
Kruger consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
Forward Looking Statement
This release may include forward-looking statements, which may be identified
by words such as "expects", "anticipates", "believes", "projects", "plans",
and similar expressions. These forward-looking statements are based on
Sovereign's expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Sovereign, which could cause actual
results to differ materially from such statements. There can be no assurance
that forward-looking statements will prove to be correct. Sovereign makes no
undertaking to subsequently update or revise the forward-looking statements
made in this release, to reflect the circumstances or events after the date of
that release.
The information contained within this announcement is deemed by Sovereign to
constitute inside information as stipulated under the Regulation 2014/596/EU
which is part of domestic law pursuant to the Market Abuse (Amendment) (EU
Exit) Regulations (SI 2019/310) ("UK MAR"). By the publication of this
announcement via a Regulatory Information Service, this inside information (as
defined in UK MAR) is now considered to be in the public domain.
APPENDIX 1: Preliminary Analysis of REE Distribution in Kasiya Monazite
Sample Type From Magnetic Heavy Minerals Concentrate Monazite product from Non-conductor Stream
Sample ID KYAC0479 KYAC0479 KYAC0486 KYAC0486 Weighted Average 0-6m 0-6m
0-6m 6-20m 0-6m 6-20m
La(2)O(3) % 16.9 17.2 16.9 17.2 17.1 15.4 15.5
CeO(2) % 31.9 39 31.8 38.9 36.8 34.4 34.2
Pr(6)O(11) % 4.2 5.8 5.6 5.9 5.6 5.4 5.4
Nd(2)O(3) % 14.5 16.7 15.8 16.7 16.2 14.6 14.5
Sm(2)O(3) % 3 3.3 3.1 3.2 3.2 2.8 2.8
Eu(2)O(3) % 0 0.2 0 0.2 0.1 0.1 0.1
Gd(2)O(3) % 3.6 2.8 3.4 2.8 3.0 2.6 2.6
Tb(4)O(7) % 2.2 0.6 2.4 0.8 1.2 0.8 0.8
Dy(2)O(3) % 1.7 1.8 1.3 1.7 1.7 2.4 2.4
Ho(2)O(3) % 0.4 0.3 1.2 0.3 0.5 0.3 0.2
Er(2)O(3) % 2.1 1.1 2.1 1.1 1.4 1.5 1.5
Tm(2)O(3) % 0.3 0.1 0.3 0.1 0.2 0.2 0.2
Yb(2)O(3) % 1.8 0.9 1.4 0.8 1.1 1.8 1.8
Lu(2)O(3) % 0.2 0.1 0.2 0.1 0.1 0.3 0.3
Y(2)O(3) % 17.3 10.2 14.5 10.2 11.9 17.2 17.4
U(3)O(8) ppm 7,067 7,465 6,190 5,953 6,685 8,626 8,373
ThO(2) ppm 17,327 22,467 17,168 24,430 21,588 20,420 19,654
APPENDIX 2: Company Specific Sources
Project Company Status Source Data Link
Balranald Iluka Resources Limited Development Company Presentation: "Macquarie Conference" https://www.iluka.com/media/d5gjznmn/iluka-resources-macquarie-australia-conference-may-2025.pdf
(7-May-25)
Bayan Obo China Northern Rare Earth (Group) High-Tech CO. Ltd Producing Rare Earth Exchanges rareearthexchanges.com/project/bayan-obo/
(8-Feb-25)
Enneaba Iluka Resources Limited Development Company Presentation: "Macquarie Conference" https://www.iluka.com/media/d5gjznmn/iluka-resources-macquarie-australia-conference-may-2025.pdf
(7-May-25)
Kangankunde Lindian Resources Ltd. Development Company Announcement: "Kangankunde Project Stage 1 Outstanding Feasibility https://static1.squarespace.com/static/58a516a859cc689ad6303dc4/t
Study Results"
/6681df545eee2944615f3358/1719787358011/Outstanding+Kangankunde+Stage+1+
(1-Jul-24)
Feasibility+Study+Results+2741301.pdf
Longonjo Pensana Plc Development Company Announcement: "Longonjo Mineral Resource estimate upgraded" https://pensana.co.uk/wp-content/uploads/2020/09/longonjo-mineral-resource-estimate-upgraded-14-Sept-2020.pdf
(14-Sept-20)
Maoniuping China Rare Earth Group Producing Rare Earth Exchanges https://rareearthexchanges.com/project/maoniuping/
(8-Feb-25)
Mt Weld Lynas Rare Earths Ltd. Producing Vara Mada Feasibility Study https://www.energyfuels.com/wp-content/uploads/2026/01/FS-Vara-Mada-Project-Report-NI43-101-FINAL-01.07.2026.pdf
NI43-101 & S-K 1300 Technical Summary
(7-Jan-26)
Mountain Pass MP Materials Corp. Producing SEC FILING: 10-K - Mineral Resource Estimate https://d18rn0p25nwr6d.cloudfront.net/CIK-0001801368/37126578-26fe-49e0-b0d2-12c6053a5a1b.pdf
(28-Feb-25)
Nolans Arafura Rare Earths Ltd Development Company Announcement: "Nolans DFS Delivers Robust Project Economics" https://wcsecure.weblink.com.au/pdf/ARU/02073274.pdf
(7-Feb-19)
Phalaborwa Rainbow Rare Earths Limited Development Company Presentation: "Decision to use SX as the optimal separation route https://www.rainbowrareearths.com/wp-content/uploads/2025/11/Corporate-Presentation-November-2025-FINAL.pdf
for Phalaborwa"
(25-Nov-25)
Songwe Hill Mkango Resources Ltd Development SEDAR FILING"NI43-101 Technical Report on the Songwe Hill Rare Earth Element https://www.sedarplus.ca/csa-party/records/document.html?id=ac89e479364d84c1649c942630b03245c0bf337b2e0f902e6c0267058f330cb6
Project in Malawi"
(18-Aug-22)
Vara Mada Energy Fuels Inc. Development Vara Mada Feasibility Study https://www.energyfuels.com/wp-content/uploads/2026/01/FS-Vara-Mada-Project-Report-NI43-101-FINAL-01.07.2026.pdf
NI43-101 & S-K 1300 Technical Summary
(7-Jan-26)
Weishan China Rare Earth Group Producing Rare Earth Exchanges rareearthexchanges.com/project/weishan/
(8-Feb-25)
Wimmera Iluka Resources Limited Development Company Presentation: "Macquarie Conference" https://www.iluka.com/media/d5gjznmn/iluka-resources-macquarie-australia-conference-may-2025.pdf
(7-May-25)
APPENDIX 3: DRILL HOLE COLLAR DATA AND LOCATION MAP
Borehole ID Type Easting Northing Elevation Dip Depth
KYAC0479 AC 543498.61 8471501.63 1118.45 -90 20
KYAC0486 AC 543900.23 8468100.96 1139.18 -90 20
KYPIT0176 PIT 544300.24 8471701.36 1124.88 -90 6
KYPIT0177 PIT 544701.06 8472099.02 1132.48 -90 6
KYPIT0178 PIT 543298.68 8472101.77 1119.87 -90 6
KYPIT0179 PIT 543498.33 8471502.31 1118.83 -90 6
APPENDIX 4: RAW ASSAY DATA
Hole ID KYAC0479 KYAC0479 KYAC0486 KYAC0486
From 0 6 0 6
To 6 20 6 20
Sample Mag conc Mag conc Mag conc Mag conc
La ppm 1248 11099 1239 13033
Ce ppm 2251 24059 2218 28187
Pr ppm 302 3633 397 4358
Nd ppm 1077 10843 1158 12714
Dy ppm 125 1163 98 1355
Sm ppm 222 2155 227 2478
Er ppm 159 697 159 844
Eu ppm N/D 114 N/D 124
Gd ppm 267 1832 255 2124
Ho ppm 27 213 89 268
Lu ppm 17 77 13 91
Tb ppm 162 406 174 576
Tm ppm 20 71 20 87
Yb ppm 139 572 109 638
Y ppm 1178 6111 981 7128
U3O8 ppm 123 1035 102 946
ThO2 ppm 291 3006 273 3746
U ppm 104.30801 877.7137042 86.49932 802.2388
Th ppm 255.73425 2641.70841 239.9156 3292.029
Hole ID KYPIT0176 KYPIT0177 KYPIT0178 KYPIT0179
From 0 0
To 6 6
Sample NC Mag Conc 1 NC Mag Conc 2
La ppm 12527 12431
Ce ppm 26695 26099
Pr ppm 4302 4219
Nd ppm 11958 11691
Dy ppm 2022 1998
Sm ppm 2331 2277
Er ppm 1264 1231
Eu ppm 119 116
Gd ppm 2182 2140
Ho ppm 237 191
Lu ppm 230 228
Tb ppm 638 674
Tm ppm 175 172
Yb ppm 1520 1503
Y ppm 12962 12890
U3O8 ppm 1463 1377
ThO2 ppm 3342 3119
U ppm 1241 1168
Th ppm 2937 2741
APPENDIX 5: JORC CODE, 2012 EDITION - TABLE 1
Section 1 - Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling Techniques Nature and quality of sampling (e.g. cut channels, random chips, or specific Air-Core (AC) samples are generally composited on 2m intervals. Each 1m of
specialised industry standard measurement tools appropriate to the minerals sample is dried and riffle-split to generate a total sample weight of 3kg for
under investigation, such as down hole gamma sondes, or handheld XRF analysis.
instruments, etc). These examples should not be taken as limiting the broad
meaning of sampling. The primary sample (nominally 3kg) is split to provide two 1.5kg samples for
both HM and graphite analyses.
Include reference to measures taken to ensure sample representivity and the Drilling and sampling activities are supervised by a suitably qualified
appropriate calibration of any measurement tools or systems used. company geologist who is present at all times. All drill samples are
geologically logged by the geologist at the drill site/core yard.
Each sample is sun dried and homogenised. Sub-samples are carefully riffle
split to ensure representivity. The 1.5kg composite samples are then
processed.
An equivalent mass is taken from each sample to make up the composite. A
calibration schedule is in place for laboratory scales, sieves and field XRF
equipment.
MSA Group Resource Geologists completed site visits and reviewed Standard
Operating Procedures (SOPs) for the collection and processing of drill samples
and found them to be fit for purpose. The primary composite sample is
considered representative for this style of HM and graphite mineralisation.
Aspects of the determination of mineralisation that are Material to the Public Logged mineralogy percentages and lithology/regolith information are used to
Report. In cases where 'industry standard' work has been done this would be assist in determining compositing intervals. Care is taken to ensure that only
relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples with similar geological characteristics are composited together.
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (e.g. submarine nodules) may warrant disclosure of
detailed information.
Drilling Techniques Drill type (e.g. core, reverse circulation, open‐hole hammer, rotary air All sampling was carried out vertically to best intersect the horizontal
blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or weathering and grade layers.
standard tube, depth of diamond tails, face‐sampling bit or other type,
whether core is oriented and if so, by what method, etc). All material of interest is in the weathered zones located above the saprock
boundary, so no collection of oriented core was possible or warranted.
Drill Sample Recovery Method of recording and assessing core and chip sample recoveries and results Samples are assessed visually for recoveries. The configuration of drilling
assessed. and nature of materials encountered results in negligible sample loss or
contamination.
AC drilling recovery in the top few metres is moderate to good. Extra care is
taken to ensure sample is recovered best as possible in these metres. Sample
weight is recorded to determine recovery at the rig at the time of drilling by
the geologist. Drilling is ceased when recoveries become poor or once Saprock
or refusal has been reached.
Measures taken to maximise sample recovery and ensure representative nature of The Company's trained geologists supervise drilling on a 1 team 1 geologist
the samples. basis and are responsible for monitoring all aspects of the drilling and
sampling process.
AC samples are recovered in large plastic bags. The bags are clearly labelled
and delivered back to sovereign's laydown yard at the end of shift for
processing.
Whether a relationship exists between sample recovery and grade and whether No relationship is believed to exist between grade and sample recovery. The
sample bias may have occurred due to preferential loss/gain of fine/coarse high percentage of silt and absence of hydraulic inflow from groundwater at
material. this deposit results in a sample size that is well within the expected size
range.
Logging Whether core and chip samples have been geologically and geotechnically logged AC 1m intervals are geologically logged using company codes. A small
to a level of detail to support appropriate Mineral Resource estimation mining representative sample is collected for each 1m interval and placed in chip
studies and metallurgical studies. trays for future reference
Whether logging is qualitative or quantitative in nature. Core (or costean, All logging includes lithological features and estimates of basic mineralogy.
channel, etc.) photography. Logging is qualitative.
The total length and percentage of the relevant intersection logged 100% of samples are geologically logged.
Sub- sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. Not applicable - no core drilling conducted.
If non-core, whether riffled, tube sampled, rotary split, etc. and whether AC hole samples are dried, riffle split and composited. Samples are collected
sampled wet or dry. and homogenised prior to splitting to ensure sample representivity. ~1.5kg
composite samples are processed.
Where drillhole lengths are composited into longer samples for processing, an
equivalent mass is taken from each primary sample to make up the composite.
The primary composite sample is considered representative for this style of
mineralisation and is consistent with industry standard practice.
For all sample types, the nature, quality and appropriateness of the sample Techniques for sample preparation are detailed on SOP documents MSA
preparation technique. Geologists.
Sample preparation is recorded on a standard flow sheet and detailed QA/QC is
undertaken on all samples. Sample preparation techniques and QA/QC protocols
are appropriate for mineral determination and support the resource
classifications as stated.
Quality control procedures adopted for all sub-sampling stages to maximise The sampling equipment is cleaned after each sub-sample is taken.
representivity of samples.
Field duplicate, laboratory replicate and standard sample statistical analysis
is employed to manage sample precision and analysis accuracy.
Measures taken to ensure that the sampling is representative of the in situ Sample size analysis is completed to verify sampling accuracy. Field
material collected, including for instance results for field duplicates are collected for precision analysis of riffle splitting. SOPs
duplicate/second-half sampling. consider sample representivity. Results indicate a sufficient level of
precision for mineral resource classification.
Whether sample sizes are appropriate to the grain size of the material being The sample size is considered appropriate for the material sampled.
sampled.
Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory Monazite (Magnetic concentrate)
procedures used and whether the technique is considered partial or total.
All sample preparation is completed at Sovereign Metals Malawi onsite
laboratory (SSL) located in Lilongwe. The sample preparation methods are
considered quantitative to the point where a non-magnetic (NM) concentrate is
generated. Since June 2023 SSL has included the magnetic separation process to
create the NM concentrate, which is then sent to an external laboratory for
TiO(2) analysis. Prior to 2023 the Heavy Mineral Concentrate (HMC) was sent to
AML Laboratory in Perth for separation.
Final results generated are for recovered REE present in the magnetic fraction
as monazite and xenotime.
The current SSL Laboratory workflow is:
• Dry sample in oven for 1 hour at 105℃
• Soak in water and lightly agitate
• Wet screen at 5mm, 600µm and 45µm to remove oversize and
slimes material
• Dry +45µm -600mm (sand fraction) in oven for 1 hour at 105℃
• Pass +45µm -600mm (sand fraction) across wet table to
generate a HMC.
• Dry HMC in oven for 30 minutes at 105℃
• Magnetic separation of the HMC by Carpco magnet @ 16,800G
(2.9Amps) into a magnetic (M) and non-magnetic (NM) fraction
• Send M to external laboratory for ICP_OES for REE + Y and
other elements by XRF analysis
Workflow code is presented below.
LLW-LLW-SS
• The M fractions are sent to Scientific Servies South Africa
for quantitative XRF analysis. Samples are analysed for: TiO2, Nd2O3, CeO2,
La2O3, BaO, HfO2, Nb2O5, ZrO2, Y2O3, Fe2O3, MnO, Cr2O3, V2O5, CaO, K2O, P2O5,
SiO2, Al2O3, MgO, NaO2, Th and U.
The M fractions are sent to Scientific Servies South Africa for quantitative
ICP_OES analysis. Samples are analysed for REE and Y
For geophysical tools, spectrometers, Acceptable levels of accuracy and precision have been established. No pXRF
methods are used for quantitative determination.
handheld XRF instruments, etc., the parameters used in determining the
analysis including instrument make and model, reading times, calibrations
factors applied and their derivation, etc.
Nature of quality control procedures Sovereign uses internal and externally sourced wet screening reference
material inserted into samples batches at a rate of 1 in 20. The externally
adopted (e.g. standards, blanks, duplicate, external laboratory checks) and sourced, certified standard reference material for HM and Slimes assessment is
whether acceptable levels of accuracy (i.e. lack of bias) and precision have provided by Placer Consulting.
been established.
Analysis of sample duplicates is undertaken by standard statistical
methodologies (Scatter, Pair Difference and QQ Plots) to test for bias and to
ensure that sample splitting is representative. Standards determine assay
accuracy performance, monitored on control charts, where failure (beyond 3SD
from the mean) may trigger re-assay of the affected batch.
Examination of the QA/QC sample data indicates satisfactory performance of
field sampling protocols and assay laboratories providing acceptable levels of
precision and accuracy.
Acceptable levels of accuracy and precision are displayed in statistical
analyses to support the resource classifications as applied to the estimate.
Verification of sampling & assaying The verification of significant intersections by either independent or Results are reviewed in cross-section using Datamine Studio RM and Micromine
alternative company personnel. software and any spurious results are investigated.
The use of twinned holes. Twinned holes are drilled across a geographically dispersed area to determine
short-range geological and assay field variability for the resource
estimation. Twins were primarily: HA and AC; PTDD and AC and more recently SA
and AC. A total of 389 twin holes have been drilled of which 135 are twins of
the same drilling type, the remainder being comparisons between different
drilling methods. All twins are within 5m of each other.
Comparison between the drilling methods shows some bias in the sizing
distributions particularly in the volume of +45 um recovered due to behaviour
of coarse size fractions at the drill face. Key parameters are: sample
diameter; downhole air pressure; cyclone efficiency; moisture content; and
drill bit configuration. The variances observed fall within the grades
tolerances expected for this type of deposit.
Documentation of primary data, data entry procedures, data verification, data All data is collected electronically using coded templates and logging
storage (physical and electronic) protocols. software. This data is then imported to a SQL Database and validated both
automatically (on upload) and manually (by viewing sections).
Discuss any adjustment to assay data. Assay data adjustments are made to convert laboratory collected weights to
assay field percentages and to account for moisture.
Location of data points Accuracy and quality of surveys used to locate drill holes (collar and A Trimble R2 Differential GPS is used to pick up the collars. Daily capture at
down-hole surveys), trenches, mine workings and other locations used in a registered reference marker ensures equipment remains in calibration.
Mineral Resource estimation.
No downhole surveying of any holes is completed. Given the vertical nature and
shallow depths of the holes, drill hole deviation is not considered to
significantly affect the downhole location of samples.
Specification of the grid system used. WGS84 UTM Zone 36 South.
Quality and adequacy of topographic The digital terrane model (DTM) was generated by wireframing a 20m-by-20m
lidar drone survey point array, commissioned by Sovereign in March 2022. Major
control. cultural features were removed from the survey points file prior to generating
the topographical wireframe for resource model construction. The ultra-high
resolution 3D drone aerial survey was executed utilising a RTK GPS equipped
Zenith aircraft with accuracy of <10cm ground sampling distance (GSD).
Post-processing includes the removal of cultural features that do not reflect
material movements (cemeteries, pits, mounds, etc.)
Data spacing & distribution Data spacing for reporting of Exploration Results. Preliminary regional exploration is completed on a nominal 800m grid. The
infill HA drilling is spaced nominally 400m along the 400m spaced drill-
lines. Further infill is completed with PT and AC holes similarly spaced at an
offset grid. In some areas recent PT, AC and SA drilling has been completed on
a 200m offset grid. The resultant infill 141m and 283m equilateral spacing is
deemed to adequately define the mineralisation.
The PT and SA holes are selectively placed throughout the deposit to ensure a
broad geographical and lithological spread for the analysis.
Whether the data spacing and distribution is sufficient to establish the The drill spacing and distribution is considered to be sufficient to establish
degree of geological and grade continuity appropriate for the Mineral Resource a degree of geological and grade continuity.
and Ore Reserve estimation procedure(s) and classifications applied.
Variogram analysis completed using Supervisor software informs the optimal
drill and sample spacing. Based on these results and the experience of the
Competent Person, the data spacing and distribution is considered adequate for
the definition of mineralization.
Whether sample compositing has been applied. All samples were assigned a Weathering domain code based on the geology
logging and 3D weathering profile interpretation. Separate grade domains for
both rutile and graphite were interpreted based on nominal mineralisation
cut-offs.
Compositing to create a single composite representing the unique weathering
and mineralisation domain down each hole was completed.
Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible Sample orientation is vertical and approximately perpendicular to the
structures and the extent to which this is known considering the deposit type orientation of the mineralisation, which results in true thickness estimates,
limited by the sampling interval as applied. Drilling and sampling are carried
out on a regular grid.
If the relationship between the drilling orientation and the orientation of There is no apparent bias arising from the orientation of the drill holes with
key mineralised structures is considered to have introduced a sampling bias, respect to the orientation of the deposit.
this should be assessed and reported if material.
Sample security The measures taken to ensure sample security Samples are stored in secure storage from the time of drilling, through
gathering, compositing and analysis. The samples are sealed as soon as site
preparation is complete.
A reputable international transport company with shipment tracking enables a
chain of custody to be maintained while the samples move from Malawi to South
Africa and Australia. Samples are again securely stored once they arrive and
are processed at respective laboratories.
At each point of the sample workflow the samples are inspected by a company
representative to monitor sample condition. Each laboratory confirms the
integrity of the samples upon receipt.
Audits or reviews The results of any audits or reviews of sampling techniques and data No audits of the Monazite work have been completed. Independent consultant
Chris Le Roux of Pro Nexus Consult has peer reviewed the results relating to
Monazite.
Section 2 - Reporting of Exploration Results
Criteria Explanation Commentary
Mineral tenement & land tenure status Type, reference name/number, location and ownership including agreements or The Company owns 100% of the following Exploration Licences (ELs) and
material issues with third parties such as joint ventures, partnerships, Retention Licences (RLs) under the Mines and Minerals Act 2019 (Malawi), held
overriding royalties, native title interests, historical sites, wilderness or in the Company's wholly-owned, Malawi-registered subsidiaries: EL0609,
national park and environment settings. EL0582, EL0561, EL0657, EL0710 and RL0035-0046.
A 5% royalty is payable to the government upon mining and a 2% of net profit
royalty is payable to the original project vendor.
No significant native vegetation or reserves exist in the area. The region is
intensively cultivated for agricultural crops.
The security of the tenure held at the time of reporting along with any known The tenements are in good standing and no known impediments to exploration or
impediments to obtaining a licence to operate in the area. mining exist.
Exploration done by other parties Acknowledgement and appraisal of exploration by other parties. Sovereign is a first-mover in the discovery and definition of residual rutile,
monazite and graphite resources in Malawi. No other parties are, or have been,
involved in exploration.
Geology Deposit type, geological setting and style of mineralisation The deposit type is considered a residual placer formed by the intense
weathering of rutile-rich basement paragneisses and variable enrichment by
elluvial processes.
Rutile and Monazite occurs in a mostly topographically flat area west of
Malawi's capital, known as the Lilongwe Plain, where a deep tropical
weathering profile is preserved. A typical profile from top to base is
generally soil ("SOIL" 0-1m) ferruginous pedolith ("FERP", 1-4m), mottled zone
("MOTT", 4-7m), pallid saprolite ("PSAP", 7-9m), saprolite ("SAPL", 9-25m),
saprock ("SAPR", 25-35m) and fresh rock ("FRESH" >35m).
Drill hole information A summary of all information material to the understanding of the exploration All intercepts relating to the Kasiya Deposit have been included in public
results including a tabulation of the following information for all Material releases during each phase of exploration. Releases included all collar and
drill holes: easting and northings of the drill hole collar; elevation or RL composite data and these can be viewed on the Company website.
(Reduced Level-elevation above sea level in metres of the drill hole collar);
dip and azimuth of the hole; down hole length and interception depth; and hole There are no further drill hole results that are considered material to the
length understanding of the exploration results. Identification of the broad zone of
mineralisation is made via multiple intersections of drill holes and to list
them all would not give the reader any further clarification of the
distribution of mineralisation throughout the deposit.
If the exclusion of this information is justified on the basis that the No relevant Monazite data has been excluded.
information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should
clearly explain why this is the case
Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum All results reported are of a length-weighted average of in-situ grades.
and/or minimum grade truncations (e.g. cutting of high-grades) and cut-off
grades are usually Material and should be stated. No cutting has been applied
Where aggregate intercepts incorporate short lengths of high-grade results and No data aggregation was required.
longer lengths of low-grade results, the procedure used for such aggregation
should be stated and some typical examples of such aggregations should be
shown in detail.
The assumptions used for any reporting of metal equivalent values should be N/A
clearly stated.
Relationship between mineralisation widths & intercept lengths These relationships are particularly important in the reporting of Exploration The mineralisation has been released by weathering of the underlying, layered
Results. gneissic bedrock that broadly trends NE-SW at Kasiya North and N-S at Kasiya
South and far North. It lies in a laterally extensive superficial blanket with
high- grade zones reflecting the broad bedrock strike orientation of ~045° in
the North of Kasiya and 360° in the South and far North of Kasiya.
If the geometry of the mineralisation with respect to the drill hole angle is The mineralisation is laterally extensive where the entire weathering profile
known, its nature should be reported. is preserved and not significantly eroded. Minor removal of the mineralised
profile has occurred in alluvial channels. These areas are adequately defined
by the drilling pattern and topographical control for the resource estimate.
If it is not known and only the down hole lengths are reported, there should Downhole widths approximate true widths limited to the sample intervals
be a clear statement to this effect (e.g. 'down hole length, true width not applied. Mineralisation remains open at depth and in areas coincident with
known'. high-rutile grade lithologies in basement rocks.
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts Refer to Appendices 3 & 4.
should be included for any significant discovery being reported. These should
include, but not be limited to a plan view
of the drill collar locations and appropriate sectional views.
Balanced Where comprehensive reporting of all n/a
reporting Exploration Results is not practicable, representative reporting of both low
and high-grades and/or widths should be practiced to avoid misleading
reporting of exploration results.
Other substantive exploration data Other exploration data, if meaningful and material, should be reported Sample quality (representivity) is established by statistical analysis of
including (but not limited to: geological observations; geophysical survey comparable sample intervals.
results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
Further work The nature and scale of planned further work (e.g. test for lateral extensions Planned work to include XRF, ICP and Qemscan analysis on magnetic fractions
or depth extensions or large-scale step-out drilling). produced in Lilongwe from the 2025 Measure Resource AC drilling. Focus will be
in REE ratios related to weathering zones as well as Th and U content as well
as mineralogical characteristics of the REE hosting minerals.
Further work will include bulk sample processing to isolate monazite/xenotime
product using the electrostatic flow sheet developed for Kasiya and gravity
and magmatic processing of non-conductor fraction.
Diagrams clearly highlighting the areas of possible extensions, including the Refer to and plan views disclosed in previous announcements. These are
main geological interpretations and future drilling areas, provided this accessible on the Company's website as discussed above.
information is
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